afghanistan countries_cpi... · 1 afghanistan a: identification title of the cpi: national consumer...

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Afghanistan

A: Identification

Title of the CPI: National Consumer price Index

Organisation responsible: Central Statistics Office

Periodicity: Monthly

Index reference period: March 2004 = 100

Main uses of CPI: Indexation of wages, pensions and/or social security payment, indexation

of rents, contracts and/or other payments, main inflation indicator used for monetary policy ,

macroeconomic modelling and other analytic uses.

B: CPI Coverage

Geographical Coverage

Weights: Nation-wide

Price collection: Nation-wide

Population coverage: Resident households of nationals.

C: Concepts, definitions, classifications and weights

Definition of the CPI and its objectives: The CPI is an average of change in prices of goods

and services of the commodity basket.

Classification: COICOP (Classification of individual consumption by purpose) up to a five-

digit level.

Weights include value of consumption from own production: No

Sources of weights: Household expenditure surveys.

Frequency of weight updates: Above 5 years

Weights for different population groups or regions: City weights are computed. The city

weights are the population totals for each city including surrounding provinces. With some

modifications, the Kabul consumer basket with its commodity composition and weights has

been used in the other cities for the aggregation of items to expenditure groups and the

overall index.

D: Sample design

Sampling methods:

Outlets: Judgmental sampling

Products: Judgmental sampling

2

Criteria used for determining the optimal sample sizes and the coverage of localities,

outlets, items and variety samples: Outlet selection: For most items, three outlets are visited

for each city. They are usually located in the central market or close to that area. The outlet

types available in the major cities of Afghanistan are shops and street vendors located in

markets as well as stores and service establishments located along shopping streets. For each

item, a representative mix of outlets is selected reflecting the consumers preferences for

them. The outlets selected are two market shops and one street shop. And the shops selected

are those that are heavily frequented by shoppers. The final selection of an outlet also

depends on the results of the interview to be conducted with the shopkeeper. If the

shopkeeper is cooperative and confirms that the outlet will not be closed down in the near

future, and also offers a good selection of products, the outlet should be selected for regular

monthly visits. However, if the shopkeeper becomes uncooperative over time, the field agent

feels free to replace the shop with a similar one that has a friendlier shopkeeper.

Selection of varieties to be priced: With the help of the shopkeeper, the field agent looks for

the specific variety of items that a) is a volume seller, b) is expected to be continuously

available, and c) is easily recognizable for future pricing. Preference is given to a popular

brand, quality, size and model.

E: Data Collection

Approximate number of localities, outlets and price observations: Price observations:

3,000

Frequency with which prices are collected: Prices are collected monthly.

Reference period for data collection: Prices are collected from markets and shops in the

middle and low income areas between the 20th and 30th days of the solar month (10th-20th

of the month).

Methods of Price Collection

- Personal data collection

- Official tariffs

Treatment of:

Discounts and sales prices: Sales prices and discounted prices are recorded, but only when

they are available to all consumers.

Missing or faulty prices: If the item is temporarily missing (up to maximum one month for

non-seasonal items and eight months for seasonal items), the space for the price will be left

blank except for the entering of the C code. The price will then be imputed at the office on

the basis of changes in the prices of available items of the same product group and it will

appear in the form for the coming month as data for the previous month. This will allow for

self-correction when the item reappears.

Period for allowing imputed missing prices: One month

Disappearance of a given type or quality from the market: If the item has been

discontinued (or has not reappeared after one month), a substitute is found with the help of

the shopkeeper. It should be as similar as possible to the previously used item with respect to

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brand, origin, quality and price. The proposed item and price should be flagged with a D.

With the approval of the supervisor, the new item will be introduced in CPI calculations.

Quality differences: If a change in the item priced has occurred, the agent determines

whether this difference affects the price or not. If the change has affected the price, obviously

a new variety has appeared and the field agent tries to obtain the price of this variety for both

the current and the base period. These prices then are entered in the file and used to calculate

the price change from the base period. This solution is not ideal, but is easier to apply than to

try to separate the quality difference from the price change for these two varieties.

Appearance of new items: If a new variety has appeared then the field agent tries to obtain

the price of this variety for both the current and the base period. These prices then are entered

in the file and used to calculate the price change from the base period.

Treatment of seasonal items and seasonality

Treatment of housing

Types of dwellings covered by the rent data: Information on rent is collected on a monthly

basis from three real-estate agents in the city and covers six types of housing units.

F: Computation

Formula used for calculation of elementary indices: The ratio of arithmetic mean prices

(Dutot index) (Direct form)

Formula to aggregate elementary indices to higher-level indices: Elementary indices are

aggregated to several levels using the modified Laspeyres formula and the fixed-weights

proportional to consumption expenditures. The formula is give as

where

= Current period prices = Base period prices W = Weight

Formula of aggregating regional/population group indices into national index: The

national CPI is a weighted aggregate of the CPIs for Kabul, Herat, and Kandahar, Jalalabad,

Mazar-e-Sharif and Khost cities. The city weights are the population totals for each city

including surrounding provinces.

G: Editing and validation procedures

Control procedures used to ensure the quality of data collected: When collected prices

seem not to reflect the actual economic situation, a supervisor from the CSO visits outlets to

cross-check the prices.

Control procedures used to ensure the quality of data processed: When there are large

price differences between cities and shops, these prices are investigated.

4

H: Documentation and dissemination

Timeliness of dissemination of the CPI data: Kabul CPI is published about 10 days after

reference month. The national CPI is published in 2 weeks after the reference month. The

annual CPI for both Kabul and national is also published with 1 month lag of the reference

year.

Level of detailed CPI published

Paper publication: All items CPI, Division-level (12 Divisions)

Online: All items CPI, Division-level (12 Divisions)

Documentation

Publications and websites where indices can be found: Kabul CPI and National CPI

monthly publications, in English and Dari; CPI Statistical Yearbook and Afghanistan

Statistical Yearbook in English and Dari; Internet website: http://www.cso.gov.af/

Publications and websites where methodological information can be found:

http://www.cso.gov.af/

I: Other Information

Completed by ILO in 2013.

Albania

A: Identification

Title of the CPI: Consumer Price Index

Organisation responsible: Institute of Statistics


Price reference period: December year t 1 = 100

Index reference period: December 2007 = 100

Weights reference period: 2007


of rents, contracts and/or other payments, main inflation indicator used for monetary policy,

deflate household expenditures in national accounts , macroeconomic modelling and other

analytic uses.

B: CPI Coverage


http://www.cso.gov.af/http://www.cso.gov.af/

5

Price collection: Urban areas


Population groups excluded: Institutional households.

Consumption expenditure includes:

Foods produced for own final consumption; Other goods produced for own final consumption; Services produced for own final consumption; Income in-kind receipts of goods; Income in-kind receipts of services; In-kind goods received as gifts; In-kind services received as gifts; Housing maintenance, minor repairs; Major repairs, conversions and extensions to owner occupied housing; Purchase of gifts of goods and services given to others outside the household; Luxury goods; Financial services (including fees for financial advice, brokerage fees); Interest payments (excluding mortgage interest payments); Non-life insurance premiums (e.g. vehicle, housing, other property, medical), gross of

claims;

Life insurance premiums; Licences and fees (e.g. drivers licence, hunting licence, vehicle registration)

Consumption expenditure excludes:

Food consumed away from home; Purchase of owner-occupied housing; Mortgage repayments; Mortgage interest; Gambling expenditure, gross of winnings; Investment-related expenditures (e.g. purchase of shares/stocks); Occupational expenditures; Other business-related expenditures; Social transfers in-kind of goods and services from government and No-profit

institutions serving households;

Second hand goods purchased; Expenditures abroad


Definition of the CPI and its objectives: The Consumer Price Index (CPI) measures the

change of the prices of a fixed basket of goods and services from base period to the current

period. The consumer price index is used for different purposes: as a measurement of

inflation rate in Albania, as a deflator for the national accounts, as a deflator for calculations

of volume indices, for compensation of change in the cost of living of households, as a base

for wage negotiations and other agreement and as a target variable for macro-economic

policy, especially for monetary policy of the central bank of Albania.

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Classification: COICOP (Classification of individual consumption by purpose)


Frequency of weight updates: Every 3-5 years

Price updating of weight reference period to the index reference period: Yes

Weights for different population groups or regions: No

D: Sample design

Sampling methods:

Localities: Judgmental sampling



Frequency of sample updates:

Localities: At the time of updating the weights and the basket of goods and services.

Outlets: Annual

Products: At the time of updating the weights and the basket of goods and services.

E: Data Collection

Approximate number of localities, outlets and price observations: Localities: 11, Outlets:

500, Price observations: 18,000

Frequency with which prices are collected: Food and others items - monthly; rent

quarterly; government tariffs- yearly.

Reference period for data collection: Specific date


- Personal data collection for all items.

- Official tariffs for government prices.

Treatment of:

Discounts and sales prices: They are used in the calculation of the index.

Black market prices: Not collected.

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Second hand purchases: Not included.


Seasonal food items: Seasonal food items are included in the CPI using fixed weights

approach: the weights are kept constant over the year, while prices of out-of season products

are estimated or imputed.

Seasonal Clothing: Seasonal clothing items are included in the CPI using fixed weights



Method to impute the price of seasonal items: The method used to impute price

development in out-of season periods is carrying forward the last observed price.


Treatment of owner-occupied housing: Owner occupied housing is not included in the CPI

Types of dwellings covered by the rent data: Apartment with furniture, rent data is

collected quarterly.

F: Computation

Formula used for calculation of elementary indices: The ratio of geometric mean prices

(Jevons index) (Chained form)

Formula to aggregate elementary indices to higher-level indices: The regional CPI is

calculated (but is not published).

t

ij

i

ij

t

i PRrRCPI ,00, *

Formula of aggregating regional/population group indices into national index: To

calculate the national CPI the price relatives are aggregated geographically to form product

indices on items for whole Albania:

j

t

ijij

t

i PRrI ,0,0 where j

iijr :1 (for all cases)

Aggregation over items then gives the national CPI of Albania:

i

t

ii

t IwCPI ,0.0 where i

iw 1.

Monthly and annual average prices: Average prices are calculated monthly.

Seasonally adjusted indices: No

Software used for calculating the CPI: Microsoft Excel

8



Timeliness of dissemination of the CPI data: 6 days after the end of the reference month.


Paper publication: All items CPI, Division-level (12 Divisions), Group-level app. 40

groups, Class-level (100 classes) and Average prices

Online: All items CPI, Division-level (12 Divisions), Group-level app. 40 groups, Class-level

(100 classes)

Restricted Access: All items CPI, Division-level (12 Divisions), Group-level app. 40 groups,

Class-level (100 classes)

Separate indices published for specific population groups: No

Type of products for which average prices are calculated and disseminated: Food

product, gasoline

Documentation

Publications and websites where indices can be found: Monthly publication Consumer

Price Index; Internet website: www.instat.gov.al

Publications and websites where methodological information can be found: Monthly

publication Consumer Price Index; Internet website: www.instat.gov.al


Reported by the country in 2012.

Algeria

A: Identification

Title of the CPI: National Consumer Price Index

Organisation responsible: National Office of Statistics


Index reference period: 2001 = 100
http://www.instat.gov.al/http://www.instat.gov.al/

9

Weights reference period: 2000


of rents, contracts and/or other payments and main inflation indicator used for monetary

policy.

B: CPI Coverage






Definition of the CPI and its objectives: Consumer Price Index developed by the National

Statistics Office is a Laspeyres index. The structure of the basket for the base year is set up

on national surveys on household consumption expenditures.

Classification: The grouping of items is similar to that recommended by the international

classifications for the needs of the national accounting system.



D: Sample design


outlets, items and variety samples: Variety selection: The choice of varieties is done on the

basis of criteria such as the annual expenditure and the expenditure frequency.

Outlet selection: The points of sale are chosen directly from the field considering their good

clientele (in customers and products), depending on the types of questionnaire (categories of

goods and services) and according to their dispersal. They are geographically classified so as

to ensure the most correct representativeness possible, that is to say a satisfactory coverage of

household supplying areas.

E: Data Collection

Frequency with which prices are collected: The observations frequencies vary by product

nature and the price observation frequencies. For example fruits and vegetables - prices are

checked 3 times per week, poultry, meat and eggs - prices are checked 2 times a week. For

other varieties, the frequency is done either monthly or quarterly.


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Items that have a seasonal character and their treatment: Seasonal products are

submitted to a particular handling. For a given year, the months (index calculation periods)

may not all have the same composition (or the same basket) of fresh products. An index is

calculated from a monthly basket of the high season. This index compares the cost of the

same basket (monthly) of the current month and the month in the base year. Base prices of

varieties of the basket as well as weightings are monthly.

Seasonal food items: Seasonal food items are included in the CPI using variable weights

approach: the weights vary over the year.


F: Computation

Formula to aggregate elementary indices to higher-level indices: Aggregation of

elementary indices into higher-level indices is by Laspeyres formula.


national index is made up as a weighted average of the cities and villages indexes of the

sample considered. The weight of each town, in being the weight of its population in the total

population of the sample.

Monthly and annual average prices: The annual index is the arithmetic average of the

monthly indices.

Seasonally adjusted indices: An index with fresh products is seasonally adjusted. The

method used for the seasonal adjustment of this index is that applied for the processing of

time-series by means of moving averages in the framework of the multiplicative model. This

seasonal adjustment targets fresh products which the price fluctuation remains too important.



Timeliness of dissemination of the CPI data: The consumer price index is available on the

10th day of the month following the reference month. It is published on the 15th day.




Documentation

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Publications and websites where indices can be found: Consumer Price Index - published

monthly in Statistical data, Statistical Collection - Published annually.

http://www.ons.dz/

Publications and websites where methodological information can be found: The annual

publication "Statistical Collection" gives a more detailed idea about the methodology used for

the index calculation.



Andorra

A: Identification

Title of the CPI: Consumer Price Index of Andorra

Organisation responsible: Ministry of Finance and Civil Service / Dpartement de la

Statistique



Weights reference period: March 2001 Family Budget Survey.



computation of purchasing power of households, macroeconomic modelling and other

analytic uses.

B: CPI Coverage






Definition of the CPI and its objectives: The consumer price index is a measurement tool to

estimate, between two periods, the change in prices of goods and services consumed by
http://www.ons.dz/

12

residents in Andorra. The CPI measures the effect of changes in consumption that are just a

result of price changes.

Classification: COICOP (Classification of Individual Consumption of Purpose)


Frequency of weight updates: Annual

Price updating of weight reference period to the index reference period: No, not needed.

D: Sample design

Sampling methods:




outlets, items and variety samples: Item/ product selection: The product is defined and

associated with a stall from which to follow the evolution of prices in time. The products that

make up the framework of the CPI have to meet a number of conditions which include i) Be

representative of the national consumption, ii) Be representative of the spatial distribution of

consumption declared by the families surveyed as part of the CPI iii) Be representative of the

sharing site, ie devote more efforts on commercial transactions which take place more

frequently.

E: Data Collection

Frequency with which prices are collected: The set of prices are collected monthly except

for housing prices and household services, which are collected quarterly. In the case of the

fees or controlled prices, there is need to know when the price changes, so that the price

calculation period (Pi) is determined in proportion to the days when every price is in force

during the quarter .



- Central price collection



F: Computation

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(Dutot index) (Chained form)

Formula to aggregate elementary indices to higher-level indices: Aggregation of

elementary series to higher-level series is by Laspeyres formula. The Laspeyres index is

defined as the ratio of the cost of a basket of securities at a specified time and the base period.

From this formula, the index of a month is the weighted average of the items or groups of

items that make up the index.

where

= the general index = the weight per unit of time range = the index of the variety The index of the variety is the ratio between the average price of the items in the current period ( ) and the average price of items in the base period ( ) i.e

Monthly and annual average prices: The average price range of different items is

calculated by the geometric mean of the price series obtained from different outlets.


Control procedures used to ensure the quality of data collected: Once entire price series

are available, price checks are done in order to resolve errors in transcription, omissions etc.

These price controls meet certain criteria in order to identify those series that can show the

evolution of prices in disagreement with reality. These criteria are: any number that varies

significantly, all series evolving in the opposite direction compared to the other series that

make up the variety, all series evolving much more or much less than had historically, all

series involving a change of product, because it has been exhausted, or because the store is

closed. The number of controlled series each month range on average around 10% -15%. The

adjusted number of surveys may represent between 1% and 2%. Having the entire sample and

the historical knowledge helps pass the correct prices to calculate the index.



Paper publication: All items CPI, Division-level (12 Divisions), Group-level app. 40 groups

Online: All items CPI, Division-level (12 Divisions), Group-level app. 40 groups

Documentation

14

Publications and websites where methodological information can be found: The

methodological document of the CPI can be found at

http://www.estadistica.ad/serveiestudis/web/index.asp



Angola

A: Identification

Title of the CPI: Indice de Preos No Consumidor de Luanda

Organisation responsible: Instituto Nacional de Estatstica (INE)


Price reference period: December 2010 = 100


Weights reference period: May 2008 May 2009

Main uses of CPI: Main inflation indicator used for monetary policy, deflates household

expenditures in national accounts and computation of purchasing power of households.

B: CPI Coverage


Weights: Main city (can include surrounding areas)

Price collection: Main city (can include surrounding areas)


Population groups excluded: Low income households, high income households and one-

person households.


Foods produced for own final consumption; Food consumed away from home; Income in-kind receipts of goods; Income in-kind receipts of services;
http://www.estadistica.ad/serveiestudis/web/index.asp

15

Housing maintenance, minor repairs; Luxury goods; Gambling expenditure, gross of winnings


In-kind goods received as gifts; In-kind services received as gifts; Purchase of owner-occupied housing; Mortgage repayments; Mortgage interest; Major repairs, conversions and extensions to owner occupied housing; Purchase of gifts of goods and services given to others outside the household; Financial services (including fees for financial advice, brokerage fees); Interest payments (excluding mortgage interest payments); Non-life insurance premiums (e.g. vehicle, housing, other property, medical), gross of

claims;

Life insurance premiums; Licences and fees (e.g. drivers licence, hunting licence, vehicle registration); Investment-related expenditures (e.g. purchase of shares/stocks); Occupational expenditures; Other business-related expenditures; Social transfers in-kind of goods and services from government and No-profit

institutions serving households;

Second hand goods purchased; Expenditures abroad


Definition of the CPI and its objectives: CPI is an indicator which measures changes in the

prices of a selected set of goods and services representing household consumption in a given

period of time and in a particular geographic area. It is used as an inflation indicator for

monetary policy, deflator of household expenditure in the national accounts and for

estimating the purchasing power of households.

Definition of consumption expenditures: Purchased value of goods and services.

Classification: COICOP (Classification of Individual Consumption of Purpose)

Weights include value of consumption from own production: Yes



Price updating of weight reference period to the index reference period: The weights are

price updated up to the base period December 2010 = 100.

16

Weights for different population groups or regions: Not yet, it will be available in July

2012.

D: Sample design

Sampling methods:





Localities: discretionary

Outlets: discretionary

Products: discretionary

If sample updates are irregular indicate when last updates were introduced: 2009


outlets, items and variety samples: Prices are collected in the capital city where the most

popular outlets are being selected. All parallel markets are also of interest.

Criteria used for selecting an item variety in the outlet in case of loose specifications

provided by the central office: Surveying the shopkeepers in order to identify the most

popular brands.

E: Data Collection

Approximate number of localities, outlets and price observations: Localities: 5/7

Municipalities, Outlets: 141, Price observations: 14,788

Frequency with which prices are collected: Food items weekly, all others items monthly

except for rents which are collected annually.

Reference period for data collection: Average monthly prices are calculated as geometric

averages of prices collected in different observation units.


- Personal data collection for food and non-food items.

- Official tariffs for public services.

Treatment of:

17

Discounts and sales prices: Discounts and sales prices for only regular products, i.e.,

undamaged, with no expired date, etc. are included in price collection.

Black market prices: Yes


Missing or faulty prices: Missing prices are treated by carrying forward the previous

observation.

Period for allowing imputed missing prices: A missing price is carried forward for 3 months

after which the price collector is asked to recommend a replacement.

Disappearance of a given type or quality from the market: Once are product disappears

from the market, it is replaced with a product of similar characteristics and price.

Quality differences: When a change in quality is observed, either the product or the outlet is

changed.

Appearance of new items: A new product in the market that was not initially in the CPI

basket is not included, but an already existent product that appears with new characteristics is

changed as from the base period.


Items that have a seasonal character and their treatment: The last price is carried

forward.




Seasonal Clothing: Seasonal clothing items are included in the CPI using fixed weights



Method to impute the price of seasonal items: The method used to impute price

development in out-of season periods is carrying forward the last observed price.


Treatment of owner-occupied housing: Owner occupied housing is not included in the CPI

Types of dwellings covered by the rent data: Insere- se smente as rendas de casa efectiva.

F: Computation


(Jevons index) (Direct form)

18

Formula to aggregate elementary indices to higher-level indices: Weighted arithmetic

average is used to aggregate the indices. Laspeyres formula, with a fixed basket and weights

corresponding to the base period (December 2010) is used. The formula used is as follows:

i) t0

i

n

it i0

i=1

n

i0 i0

I =

P Q

P Q

1

ii) t0

i=1

nit

i0

i0 i0

i=1

n

i0 i0

I =P

P(

P Q

P Q

)

Where:

= index of period t relative to the base period; = price of variety i in period t;

= price of variety i in base period; = quantity consumed of variety i in base period.

Formula of aggregating regional/population group indices into national index: Index for

capital only is calculated.

Seasonally adjusted indices: No seasonal adjustment.


Control procedures used to ensure the quality of data collected: Supervision in the field.

Control procedures used to ensure the quality of data processed: Semanalmente faz-se

uma critica de preos para que todos os produtos estejem no mesmo nvel.


Timeliness of dissemination of the CPI data: CPI data is disseminated 7 days after the end

of the reference month.



groups, Class-level (100 classes) and Average prices

Online: Group-level app. 40 groups, Average prices

Restricted Access: Basic items

Separate indices published for specific population groups: No

Type of products for which average prices are calculated and disseminated: Food

products.

19

Documentation

Publications and websites where indices can be found: Internet website: www.ine.gov.ao

Publications and websites where methodological information can be found: Boletim

mensal do IPC Abril de 2012



Anguilla

A: Identification


Organisation responsible: Anguilla Statistics Department

Periodicity: Quarterly




policy.

B: CPI Coverage






Definition of the CPI and its objectives: The CPI is a measure used for the general level of

retail prices in the Anguilla economy. Its change from one period to another (inflation rate)

indicates the general price movement. It is a composite measure of the change in average

prices paid by the consumer for a representative basket of goods and services.

http://www.ine.gov.ao/

20


D: Sample design

E: Data Collection

Approximate number of localities, outlets and price observations: Outlets: 30

Frequency with which prices are collected: Price surveys are conducted quarterly.

Reference period for data collection: Prices are collected on Wednesday of the first week

of the last month of the quarter.





F: Computation






Documentation

Publications and websites where indices can be found: Consumer Price Index

Quarterly release, Internet website: http://www.gov.ai/statistics/



Antigua and Barbuda

A: Identification
http://www.gov.ai/statistics/

21

Organisation responsible: Eastern Caribbean Central Bank (ECCB)


Index reference period: January 2001 = 100

Weights reference period: February 1998 January 1999 Household Income and

Expenditure Survey.



policy.

B: CPI Coverage


Weights: Antigua

Price collection: Antigua


Population groups excluded: Barbuda


Definition of the CPI and its objectives: The purpose of the Consumer Price Index is to

measure changes in prices of goods and services purchased by the population for household

consumption.




D: Sample design

E: Data Collection

Frequency with which prices are collected: Prices for food items are collected two weeks

each month. Frequency of vegetable prices is monthly. Prices for specific items are collected

quarterly and semi-annually.

Reference period for data collection: Data collection is done for two weeks of each month,

commencing on the second Tuesday of each month.


22

- Personal data collection for most of the items

Treatment of:

Missing or faulty prices: Imputation is done for items that are missing for approximately

three months from retail outlets.


Items that have a seasonal character and their treatment: No adjustments are currently

made for seasonality.


F: Computation


(Dutot index) (Direct form)

Formula to aggregate elementary indices to higher-level indices: The Laspeyres formula

is modified as the weighted arithmetic mean of price relatives.

Monthly and annual average prices: The annual average CPI is derived by summing the

CPI for each month of the year and dividing by 12.



Timeliness of dissemination of the CPI data: Data are disseminated approximately the last

week of the reference month.




Documentation

Publications and websites where indices can be found: Consumer price index - Monthly

release, Economic Information Sheet, Ministry of Planning", A Glance at Statistics,

Statistics Division, Quarterly Economic Digest, ECCB, Internet website: http://www.eccb-

centralbank.org/Statistics/index.asp


http://www.eccb-centralbank.org/Statistics/index.asphttp://www.eccb-centralbank.org/Statistics/index.asp

23

Argentina

A: Identification

Title of the CPI: ndice de Precios al Consumidor del Gran Buenos Aires

Organisation responsible: Instituto Nacional de Estadstica y Censos

Periodicity: Mensual

Price reference period: December year t 1 = 100

Index reference period: Abril 2008 = 100

Weights reference period: 2004 2005 actualizadas a Abril 2008.

Main uses of CPI: Computation of purchasing power of households, macroeconomic

modelling and other analytic uses.

B: CPI Coverage


Weights: Main city (can include surrounding areas)

Price collection: Main city (can include surrounding areas)

Population coverage: Resident households of nationals and resident households of

foreigners in the country.

Population groups excluded: Institutional households.


Food consumed away from home; Housing maintenance, minor repairs; Purchase of gifts of goods and services given to others outside the household; Non-life insurance premiums (e.g. vehicle, housing, other property, medical), gross of

claims;

Licences and fees (e.g. drivers licence, hunting licence, vehicle registration); Gambling expenditure, gross of winnings; Occupational expenditures; Expenditures abroad


24

Foods produced for own final consumption; Other goods produced for own final consumption; Services produced for own final consumption; Income in-kind receipts of goods; Income in-kind receipts of services; In-kind goods received as gifts; In-kind services received as gifts; Purchase of owner-occupied housing; Mortgage repayments; Mortgage interest; Major repairs, conversions and extensions to owner occupied housing; Luxury goods; Financial services (including fees for financial advice, brokerage fees); Interest payments (excluding mortgage interest payments); Life insurance premiums; Investment-related expenditures (e.g. purchase of shares/stocks); Other business-related expenditures; Second hand goods purchased; Social transfers in-kind of goods and services from government and no-profit

institutions serving households


Definition of the CPI and its objectives: El ndice de Precios al Consumidor del Gran

Buenos Aires (IPC-GBA) mide la evolucin de los precios de un conjunto de bienes y

servicios representativos del gasto de consumo de los hogares residentes en la Ciudad de

Buenos Aires y los 24 partidos del Gran Buenos Aires. El IPC-GBA mide cmo evolucionan

-en promedio- los precios de la canasta, pero no cunto vale en un momento del tiempo.

Definition of consumption expenditures: Para el clculo de las ponderaciones del IPC-

GBA se incluye, como gasto de consumo, adems de lo gastado por los hogares en bienes y

servicios de consumo individual, el valor de los bienes y servicios recibidos en pago por el

trabajo de los miembros del hogar as como los bienes obtenidos de la produccin propia del

hogar o retirados del propio negocio para consumo del hogar. Se excluyen de las

ponderaciones del IPC-GBA los gastos que en el Sistema de Cuentas Nacionales no son

considerados como de consumo (intereses, impuestos, aportes jubilatorios, cuotas de

prstamos o deudas, donaciones o transferencias a otros hogares o a instituciones sin fines de

lucro, etctera) y otras salidas de dinero imputables a la inversin fsica o financiera del hogar

(compra de viviendas, pago de cuotas a crculos de compra, amortizacin de prstamos,

compra de acciones, realizacin de depsitos bancarios, etctera). Asimismo, se excluye el

valor imputado por las Cuentas Nacionales al servicio habitacional proporcionado por las

viviendas utilizadas por sus propios dueos. Por otra parte, cabe aclarar que para el clculo de

las ponderaciones de ciertos bienes y servicios se aplican tratamientos especiales en

concordancia con las recomendaciones del SCN: a) los bienes durables (automviles, equipos

electrodomsticos, etctera) son considerados por su valor de compra neto de lo recuperado

por venta o trueque de usados, independientemente de su vida til; b) el consumo de servicios

de seguro se estima como un porcentaje de lo pagado en concepto de primas.

Classification: CCIF

25


Sources of weights: Household expenditure surveys, fuentes externas de informacin,

mercados concentradores, etc.


Price updating of weight reference period to the index reference period: Se opt por

actualizar las ponderaciones de las variedades IPC-GBA mediante la evolucin de sus ndices

de precios utilizando para ello el IPC-GBA base 1999=100

D: Sample design

Sampling methods:


Outlets: Simple random, judgmental sampling

Products: Cut-off sampling (the elements with the highest sales or value of other auxiliary

variable are included into the sample)


Outlets: At the time of updating the basket of goods and services and the weights.

Products: At the time of updating the basket of goods and services and the weights.

If sample updates are irregular indicate when last updates were introduced: April, 2008


outlets, items and variety samples: Se ha decidido continuar el nuevo ndice con la visita a

los locales seleccionados por el IPC-GBA base 1999=100, basado originalmente en una

muestra probabilstica. Se han agregado nuevos locales informantes ubicados en reas

territoriales que no haban sido tenidas en cuenta en la muestra anterior, a fin de representar

de modo ms exhaustivo el tipo de negocios y las distintas reas geogrficas del Aglomerado

Gran Buenos Aires. El tamao de muestra total para el IPC-GBA queda especificado por la

cantidad total de observaciones de precios que se realizan en un mes, que oscila en torno a

100,000. Entre estas observaciones hay dos tipos de reiteraciones: las que implican

repeticiones del mismo artculo negocio en dos o ms momentos del mes y las que derivan de

la captacin de diversos artculos negocios para una misma variedad.

E: Data Collection

Approximate number of localities, outlets and price observations: Localities: 24 partidos

GBA ms CABA, Outlets: 6,000, Price observations: 100,000

Frequency with which prices are collected: Mensual, con frecuencia quincenal para super e

hipermercados. El sistema permite frecuencia semanal segn necesidad especfica

26

Reference period for data collection: Mes completo


- Personal data collection for todos

- Mailed questionnaires for variedades con tratamiento especial.

- Telephone interviews for variedades con tratamiento especial.

- Internet for variedades con tratamiento especial.

- Official tariffs for tarifas.

Treatment of:

Discounts and sales prices: Tratamiento normal


Missing or faulty prices: Los precios faltantes se calculan a partir de su valor en el mes

anterior, aplicndoles la variacin observada en los precios de las dems variedades del

mismo producto o agrupamiento superior si correspondiera y se agregan a los precios

efectivamente observados. A excepcin del caso de las variedades con alta estacionalidad,

para las cuales se han construido cinco canastas estacionales: frutas frescas, verduras frescas,

ropa interior, ropa exterior y calzado. En donde la imputacin para dichas variedades consiste

en repetir el ltimo precio vlido.

Period for allowing imputed missing prices: Si el precio es imputado en un perodo superior a

los tres meses se reemplaza por otr similar previa aprobacin de gabinete.

Salvo las variedades estacionales que se puede encontrar sin precios durante perodos

superiores.

Disappearance of a given type or quality from the market: Se substituye por artculo

variedad similar empalmando las series.

Quality differences: Se analizan manualmente los cambios de calidad. En caso de aceptarse

el cambio se realiza una comparacin directa. En caso de que no se acepte el cambio se

imputa el valor.

Appearance of new items: En el IPC-GBA, si en el momento t aparece una variedad que no

exista anteriormente y, por su importancia, se decide incorporarla, ello se podr realizar a

partir del momento t+1 cuando se est en condiciones de calcular el primer relativo de

precios. Slo se podr insertar una nueva variedad si se tienen suficientes precios en el mes

anterior.


27

Items that have a seasonal character and their treatment: Se han construido cinco

canastas estacionales: frutas frescas, verduras frescas, ropa interior, ropa exterior y calzado.

Para cada canasta estacional las ponderaciones son constantes y derivan de la informacin de

la ENGH 2004/5, complementadas con informacin de los canales de venta y mercados

concentradores para la definicin de la ponderacin mensual de cada variedad. Las

ponderaciones mensuales de las variedades que componen las respectivas canastas

estacionales estn predeterminadas. Esto implica que en el mismo mes de distintos aos, la

ponderacin de la variedad es la misma. La metodologa usada compara precios actuales con

precios promedio de doce meses anteriores.

Seasonal food items: Seasonal food items are included in the CPI using variable weights


Seasonal Clothing: Seasonal clothing items are included in the CPI using variable weights



Types of dwellings covered by the rent data: Viviendas en alquiler ya sean departamentos

de uno a varios ambientes y casas distribuidos en todo el territorio geogrfico del IPC.

F: Computation


(Jevons index) (Direct form)

Formula to aggregate elementary indices to higher-level indices: Laspeyres. Se utiliza una

promedio ponderado de los ndices elementales.

Monthly and annual average prices: Media Geomtrica.

Software used for calculating the CPI: Software propietario diseado por el rea de sistema

del IPC. Base de datos Oracle y forms y reports de Oracle.


Control procedures used to ensure the quality of data collected: Se releva con netbooks lo

cual permite un primer control en el momento que se ingresa un precio ya que advierte

posibles errores. Supervisiones peridicas planificadas.

Control procedures used to ensure the quality of data processed: Tratamiento manual de

valores atpicos siguiendo las recomendaciones del manual del IPC.

Reportes producidos por sistema que permiten analizar las series de precios por variedad, por

variedad en local informante, por local informante, etc.



28



Restricted Access: Class-level (100 classes), Basic items

Documentation

Publications and websites where indices can be found: www.indec.gov.ar , Comunicado

de Prensa IPC INDEC Informa, Anuario Estadstico

Publications and websites where methodological information can be found: The

methodological document can be found at www.indec.gov.ar



Armenia

A: Identification


Organisation responsible: National Statistical Service (NSS)



Weights reference period: 2009 October December and 2010 January September

Household survey.



deflate household expenditures in national accounts , macroeconomic modelling and other

analytic uses.

B: CPI Coverage



http://www.indec.gov.ar/http://www.indec.gov.ar/

29



Foods produced for own final consumption; Other goods produced for own final consumption; Services produced for own final consumption; Second hand goods purchased


Definition of the CPI and its objectives: The CPI is a measure of pure price change in

fixed-market basket of goods and services of a constant quantity and quality for the general

population.





Price updating of weight reference period to the index reference period: No, not needed.

D: Sample design

Sampling methods:




outlets, items and variety samples: Outlet selection: Observation units are selected based on

volume of goods turnover and services provided by statistical units, regardless of their type of

activity, and by other methods.

Item selection: The Process for selecting goods and services is based on the household survey

data on the most consumable goods and services provided to population, as well as on the

periodical observations of trade and service outlets and on the expert estimation.

Sample sizes: Prices are surveyed for each of the items at 9 12 previously selected

commercial enterprises and service enterprises. About 250,000 price data are registered and

analyzed each month.


provided by the central office: The set of goods and services with their definitions is

prepared by the staff of the Price Statistics and International Comparisons Division of the

30

NSS and the same set of goods and services is used in all the regions for their price

registration. For each item, specification is given in such details, as production country,

quality indicators of goods, measurement unit, etc. For most of the goods and services, loose

specifications of items are provided to price collectors with instructions to select the most

popular variety. The price collector has to select the most popular variety and mark additional

characteristics (color, composition, brand, model and so on).

E: Data Collection

Approximate number of localities, outlets and price observations: Outlets: 2,655, Price

observations: 250,000

Frequency with which prices are collected: Price data are collected 3 times per month.

Reference period for data collection: Prices of consumer goods and tariffs for services are

monitored 3 times for each month, on days nearer the 1st, 10th, and 20th days of the

reference month.



- Official tariffs for communications, electricity, gas, etc.

Treatment of:

Second hand purchases: Second hand durable goods are not included in the price collection

Missing or faulty prices: In case of missing items, price change in the corresponding

item/sub-group is taken.

Period for allowing imputed missing prices: Up to 2 3 months.

Disappearance of a given type or quality from the market: When the variety is

permanently unavailable it is replaced by analogical variety with similar parameters and

features. Item replacement is made in the base year.

Quality differences: Adjustment is made for the observed item quality during the price

observation through recording item quality changes and discussing with the workers of outlet

and appropriate specialists, as well, if necessary. Implicit and/or explicit quality adjustment

techniques are conducted for new or non-comparable replacement products.

Appearance of new items: New products are not introduced in item structure before the next

weight update.


Items that have a seasonal character and their treatment: The method of seasonal price

adjustments is based on changing (in accordance with the group or sub-group of

31

corresponding indices of the given item) the last fixed price up to price of the month the

items appear.





Treatment of owner-occupied housing: No registration is made on owner-occupied

housing.

F: Computation


(Jevons index) (Chained form)

Formula to aggregate elementary indices to higher-level indices: Modified Laspeyres

formula with fixed weights is used to aggregate basic indices by item groups and Republic of

Armenia as a whole.


regional prices and indices data are aggregated in total for the Republic of Armenia using

population, turnover and services weights. Separate CPIs are compiled for 11 population

centers representing the whole 11 regions of the country.

Seasonally adjusted indices: No calculation is made for seasonally adjusted indices.


Control procedures used to ensure the quality of data collected: Control visits to

observation units are made to verify the accuracy and reliability of collected price

information. In addition possible outliers are detected by calculating confidence intervals for

the price level for each item.

Control procedures used to ensure the quality of data processed: In case of large price

variations, price collectors clarify what the reasons are. Control visits to observation units are

made to verify the accuracy and reliability of collected price information.


Timeliness of dissemination of the CPI data: Data are published on the last working day of

the reference month.



groups, Basic Items and Average prices

32

Online: All items CPI, Division-level (12 Divisions), Group-level app. 40 groups, Basic

items, Average prices

Documentation

Publications and websites where indices can be found: Yearly: The Statistical Yearbook

of Armenia is available in Armenian, English, and Russian. The Armenias Marzes and

Yerevan in Figures, statistical handbook is available in Armenian and English. Armenia in

Figures statistical handbook is available in Armenian and English. The Prices and Price

Indices in the Republic of Armenia annual statistical handbook is available in Armenian.

News release: Current Data for Main Macroeconomic Indicators Describing the Republic of

Armenias Socioeconomic Situation is available in Armenian. Press Release: Consumer Price

Index in the Republic of Armenia is available every month in Armenian. Monthly bulletin:

The Socioeconomic Situation of the Republic of Armenia monthly information report is

available in Armenian and Russian. The Consumer Price Index in the Republic of Armenia

statistical monthly bulletin is available in Armenian. Quarterly bulletin: The Poverty and

Food Security statistical bulletin is available in Armenian and English. Internet: Electronic

publications are available in Armenian, English and Russian at:

http://www.armstat.am/en/?nid=82 Armenia's national summary data page.

Publications and websites where methodological information can be found: Internet

website: www.armstat.am/file/Qualitydec/eng/9.pdf



Aruba

A: Identification


Organisation responsible: Central Bureau of Statistics




of rents, contracts and/or other payments, main inflation indicator used for monetary policy

and deflate household expenditures in national accounts.

B: CPI Coverage

http://www.armstat.am/en/?nid=82http://www.armstat.am/file/Qualitydec/eng/9.pdf

33





Food consumed away from home


Definition of the CPI and its objectives: The Consumer price index (CPI) measures

changes in prices of consumer goods and services by households. It is the measure of the rate

of price changes for goods and services bought by consumers.




D: Sample design

E: Data Collection

Frequency with which prices are collected: Prices are collected on a monthly basis for

goods and services from the stores according to the standard price observation list by price

observers.





F: Computation






34

Documentation

Publications and websites where indices can be found: Consumer price index - Monthly.

Internet website: http://www.cbs.aw/index.php/products/publications/117-

publications/business-economy/publication-prices/1055-cpi-2013



Australia

A: Identification


Organisation responsible: Australian Bureau of Statistics (ABS)

Periodicity: Quarterly

Price reference period: 12 months ended 30 June 1990

Index reference period: 12 months ended 30 June 1990

Weights reference period: June Quarter 2011


of rents, contracts and/or other payments, main inflation indicator used for monetary policy

and deflate household expenditures in national accounts.

B: CPI Coverage


Weights: Main cities/metropolitan areas/regions

Price collection: Main cities/metropolitan areas/regions


Population groups excluded: Institutional households, foreign diplomatic and military

personnel stationed in Australia and non-capital city private households.


Food consumed away from home;
http://www.cbs.aw/index.php/products/publications/117-publications/business-economy/publication-prices/1055-cpi-2013http://www.cbs.aw/index.php/products/publications/117-publications/business-economy/publication-prices/1055-cpi-2013

35

Purchase of owner-occupied housing (new dwellings excluding land); Housing maintenance, minor repairs; Major repairs, conversions and extensions to owner occupied housing; Second hand goods purchased (motor vehicles that are ex-government and ex-

business only);

Luxury goods; Financial services (including fees for financial advice, brokerage fees); Non-life insurance premiums (e.g. vehicle, housing, other property, medical), gross of

claims;

Licences and fees (e.g. drivers licence, hunting licence, vehicle registration); Investment-related expenditures (e.g. purchase of shares/stocks) (the service charge

only);

Expenditures abroad (overseas holiday travel and accommodation)


Foods produced for own final consumption; Other goods produced for own final consumption; Services produced for own final consumption; Income in-kind receipts of goods; Income in-kind receipts of services; In-kind goods received as gifts; In-kind services received as gifts; Mortgage repayments; Mortgage interest; Purchase of gifts of goods and services given to others outside the household; Interest payments (excluding mortgage interest payments); Life insurance premiums; Gambling expenditure, gross of winnings; Occupational expenditures; Other business-related expenditures; Social transfers in-kind of goods and services from government and No-profit

institutions serving households


Definition of the CPI and its objectives: The Australian Consumer Price Index (CPI) is a

general measure of price inflation for the household sector as a whole. The CPI measures the

average change over time in the price paid for a fixed basket of goods and services, acquired

by consumers in metropolitan private households. The term 'metropolitan' means the six state

capital cities, Darwin and Canberra. The current series CPI population group represents about

64% of all Australian private households. The CPI is primarily used as a macroeconomic

indicator by the government and economists to monitor and evaluate levels of inflation in the

Australian economy, and for adjusting dollar values of types of fixed payments, such as

pensions and contracts. The Australian CPI uses an acquisitions approach to construct the

CPI, as it is the most appropriate method for this purpose.

Definition of consumption expenditures: Consumption expenditure includes all those

goods and services acquired by the Australian Consumer Price Index (CPI) population group

36

in the weight reference period. The Australian CPI aims to have weights that correspond to

the relative importance of each good and service to households. The CPI weights reflect the

relative expenditures of the CPI population group as a whole and not those of any particular

type or size of household. The weighting pattern for the Australian CPI is based on the

acquisitions concept. The weight reference period includes expenditure on all those goods

and services acquired (i.e. actually received) by the reference CPI population. The

expenditure is included in the CPI weight reference period, regardless of the period in which

payment or use occurs.

Classification: COICOP (Classification of individual consumption by purpose). Links from

CPICC to COICOP are established at the class level.


Sources of weights: Household expenditure surveys, national accounts, population and

industry surveys, government and financial institution's data and administrative data.


Price updating of weight reference period to the index reference period: The Australian

CPI adjusts the expenditure weights from the weight reference period to the price reference

period using the price updating of weights methodology. The price updated weights are

calculated by multiplying the weights from the weight reference period by elementary indices

measuring the price changes between weight reference and price reference period and

rescaling to sum to unity. The weights in the 16th series Australian CPI generally relate to

expenditures in 200910, re-valued using price movements in the CPI to June quarter 2011

(the 'link' quarter).

Weights for different population groups or regions: The Australian Bureau of Statistics

produces Analytical Living Cost Indexes and a Pensioner and Beneficiary Living Cost Index

to measure the impact of price change across different subgroups of the Australian

population. They are produced as a byproduct of the Consumer Price Index using the

payments (outlays) approach. Households are categorised based on the principal source of

income, primarily derived from the Household Expenditure Survey (HES). The four

household types that are identified are; employees households, age pensioner households,

other government transfer recipient households and self-funded retiree households.

D: Sample design

Sampling methods:


Outlets: Judgmental sampling, cut-off sampling (the elements with the highest sales or value

of other auxiliary variable are included into the sample)

Products: Judgmental sampling, cut-off sampling (the elements with the highest sales or

value of other auxiliary variable are included into the sample)

37


Localities: Continuous (on a rotating basis)

Outlets: Continuous (on a rotating basis)

Products: Continuous (on a rotating basis)


outlets, items and variety samples: The importance of the expenditure class relative to the

total CPI. In general, the more important the expenditure class, the larger the sample of

products, outlets and localities.

The geographical spread of outlets: As far as possible, the samples are selected to cover the

main areas in which households from the CPI population group are known to make their

purchases.


provided by the central office: The preferred practice in pricing goods for the Australian

CPI is for price collectors to price identical specifications at all outlets in all capital cities.

Detailed specifications, which are prepared centrally for price collectors include for instance -

brand name, material of composition, model number, style, size, and type of packaging. The

nature of many goods and services, however, often makes this impossible. Specifically

products can be readily defined by form and function, but a multitude of brands and models

may exist making it impossible to guarantee that any one example of the product will be

available Australia wide (for example daily newspapers, beer). The ABS employs a

respondent standard in such a case, where a generic description is provided in sufficient

detail to ensure that the field officers will be able to locate an example of the product. This

example must be consistent with the quality of those chosen in other outlets within the same

city, and broadly consistent with those in other cities. An example of the required type of

product is chosen at each respondent outlet, and its defining characteristics are added to the

generic description for future use at that respondent.

E: Data Collection

Approximate number of localities, outlets and price observations: Price observations:

100,000

Frequency with which prices are collected: As the CPI is compiled quarterly, the prices of

most goods and services are collected once each quarter. Prices of goods and services that are

considered to be volatile (i.e. likely to change more than once during a quarter) are collected

more frequently. A few items are priced only once a year, either because that is the known

frequency that prices are reviewed (e.g. council rates) or because of seasonal availability (e.g.

football matches). The general approach is to price each item as frequently as is necessary to

ensure that reliable measures of quarterly price change can be calculated. Item frequency:

Food & non-alcoholic beverages: monthly for fresh food, quarterly for meals out, take away

and processed food, quarterly for non-alcoholic beverages. Alcohol and tobacco: monthly.

Clothing and footwear: womens garments monthly, mens garments, childrens garments,

footwear, accessories and clothing services are all quarterly. Housing: new dwelling

38

purchases by owner occupiers monthly. Rents, utilities and maintenance/repair of dwellings

are quarterly. Property rates and charges are annual. Furnishings, household equipment and

services quarterly. Health all items quarterly, except for health insurance which is priced

annually. Transport all items quarterly, except for motor vehicles (monthly) and automotive

fuel (daily). Communication: monthly. Recreation and culture: most items quarterly.

Exceptions are holiday travel and accommodation, computing equipment and software,

newspapers and magazine, all of which are priced monthly. Education all items are priced

annually, except for preschool fees which are priced quarterly. Insurance and financial

services: insurance services are priced quarterly, financial services monthly.

Reference period for data collection: The Australian CPI uses what is known as point-in-

time pricing for its price collection. Collection schedules are designed so that a particular

price collection always occurs in the same period of the quarter. For example a monthly

collection might be priced on the second Wednesday. This is done to ensure that prices are

not affected by cyclical patterns in prices, such as moving from a sale price week, to a regular

price week.


- Personal data collection for most prices. Personal visits are made to the selected outlets by

trained ABS price collectors, who observe actual marked prices. They discuss with the

retailers matters such as discounts, special offers, market shares and quality changes and

record such information.

- Mailed questionnaires for real estate agent fees and rents.

- Telephone interviews for new dwelling purchases by owner occupiers, domestic holiday

travel and accommodation, veterinary fees, medical services and household services.

- Internet for domestic internet retailers only, holiday travel and accommodation, banking

fees and charges, health insurance and car hire.

- Official tariffs for property rates and charges, stamp duties and levies, motor vehicle

registration fees, urban transport.

- Administrative data and records, electronic questionnaire various levels of government

and government authorities, industry bodies, individual businesses) for rents, new dwelling

purchases by owner occupiers, utilities, child care, automotive fuel, pharmaceutical products,

postal services, telecommunications, education, insurance and tobacco.

Treatment of:

Discounts and sales prices: Most prices are collected by personal visits to the selected

outlets by trained ABS price collectors, who discuss with the retailers matters such as

discounts, special offers, and volume-selling items on the day. Discounted prices are recorded

only when the discounts are not discriminatory and can be obtained without difficulty. The

Australian CPI does not include items on clearance i.e., disappearing goods at unusually

heavily discounted prices. Special and discounted prices are taken into consideration when

these are generally available to the buying public. An important test of whether these prices

can validly be used in compiling the CPI is whether the goods are of a quality identical to that

39

in the item specifications (e.g. the goods are not damaged or superseded stock). Another test

is that the goods are available in quantities sufficient for shoppers generally to buy them on

the pricing date (i.e. supplies are not limited to socalled earlybird shoppers, or purchases

subject to some other restriction). Although special and discounted retail prices are readily

observable for most goods, it is not necessarily so for large and expensive durables. Take

motor vehicles as an example. The prices of motor vehicles may not be advertised widely and

may be disguised with bonuses, tradeins, factory cashback offers and a package of extra

features included for the list price of the vehicle. In these cases, substantial effort, including

interviews with senior sales staff, is made to ensure that full particulars of the transactional

prices are obtained.

Black market prices: Decisions regarding the composition of the CPI basket are not based

on moral grounds, but rather on practical considerations such as obtaining weight and price

estimates, and measures of quality. In the Australian CPI, gambling is excluded as it is

difficult to establish the service or utility that households derive from gambling, and thus to

determine an appropriate price measure. Similarly recreational drugs and prostitution are both

excluded.

Second hand purchases: In practice, all transactions involving second hand goods are

assumed to occur within the household sector, with acquisitions and purchases cancelling out

to give an effective weight of zero. The exception is for motor vehicles where household

expenditure on exbusiness and exgovernment cars plus the dealer margin on used cars is

included. There is difficulty in obtaining ongoing prices to constant quality for second hand

goods. Prices for second hand goods are not collected for the Australian CPI.

Missing or faulty prices: All price data collected locally in outlets benefit from real-time

editing made possible by the use of hand-held computers. If there is a large difference

between quarters in the price for the same item in the same shop then the hand-held computer

prompts the price collector to check the price. When prices are entered into the CPI computer

system further validation checks are undertaken, supported by a tolerance level program

which identifies outliers. If there is a large difference in the price level or change compared

with similar items in other shops, then generally the price collector is asked to confirm the

price by re-contacting the outlet. This also applies to observations which are not consistent

with knowledge gained from other sources. If an item misses continually the ABS strategy

for minimizing the occurrence of missing observations is to maintain the relevance of the

sample of items priced by continuous review. Also common patterns are examined as part of

a longer-term maintenance of price samples, items, and locations for which prices are

missing. If a price cannot be observed or is faulty in a particular quarter, the ABS has several

ways of dealing with this occurrence. Where an item is temporarily out of stock in the

sampled outlet then a price is imputed normally using the average change of prices for the

same product collected in other outlets. Only if reliable information is available indicating

that prices have moved in a certain direction will this imputation be adjusted. The ABS

procedure for imputing a price for a product which has no close substitutes is to estimate the

movement where reliable market data is available supporting the movement or to impute a

movement from an upper level (related) component.

Period for allowing imputed missing prices: For missing prices the Australian CPI

distinguishes between items that are permanently and temporarily missing. For missing prices

that are temporary the nature of any seasonality in the prices is determined, as well the

characteristics of the particular good or service. Items within fruits and vegetables, and

40

clothing categories, which often have missing prices, are allowed, and with prices for them

imputed off other items in the sample that are available at the time or are close substitutes. In

such a case a missing price will generally not be allowed for extended periods. The goods and

services included in the Australian CPI pricing samples are selected carefully to represent the

range of goods and services bought by the CPI population group. Selection of replacement

items in any sample must conform to the generic specification of the sample, and be a

reasonable alternative to the missing item. CPI price collectors select replacement items on

this basis so as to minimise any quality adjustments, at best the items will be directly

comparable and require No quality adjustment. For sampling decisions, including

replacement items, the Australian CPI uses information on the buying habits of the CPI

population group such as brands, packaging sizes and product availability. This process

involves extensive consultations with retailers, manufacturers, government authorities and

other forms of market intelligence.

Disappearance of a given type or quality from the market: When a particular item or

variety becomes unavailable in the Australian CPI, price collectors seek a replacement

product which satisfies the criteria of the generic specification description. A different variety

of the item priced should have a high enough market share to warrant replacement of the item

that disappeared. CPI price collectors monitor this situation and make changes as part of

regular sample maintenance.

Quality differences: The concept of quality used in the Australian CPI is based on a notion

of consumer utility. Quality change is measured by reference to the expected value to the

consumer of the changes. Quality differences between new and replaced products are handled

by the CPI head office analysts and price collectors using a variety of methods, including

expert judgment, direct comparison (i.e. no quality change and adjustment to the price),

proportional quantity adjustment for small changes in package size, and option prices where

the price of the feature is obtained from the manufacturer or wholesaler. In the case of

personal computers, hedonic regression is used. These are all examples of explicit quality

adjustment methods. In some cases there may be overlapping prices for the replacement item

with the quality/utility difference and the item it replaces, and it may be assumed that there is

a competitive market and that in consequence the difference between the two prices is fully

accountable by differences in utility. But implicit quality adjustment methods are not the

default methodthe CPI computer system does not automatically apply the overall mean

imputation or similar methods without an instruction from the compiler.

Appearance of new items: If a new product or service is deemed to be a completely different

category of product (i.e. a new expenditure class) from any of the goods and services already

included in the CPI, its inclusion would be considered only during one of the periodic

reviews of the index where updated weighting patterns at the published level were available.

Where a new product or service falls within the definition of an existing expenditure class,

the Australian CPI takes a conservative approach with their introduction. Products and

services are introduced into existing expenditure classes only after it is deemed that they have

become widely available to the buying public, have become a permanent part of household

expenditure, and their price structures are free from premiums attributable to novelty value or

scarcity. Expenditure weights within the commodity grouping are adjusted when the new

good substitutes for specific items in an existing expenditure class. All introductions of new

items are done through a process of linking (chaining), so that the new items do not affect the

level of the index.

41


Items that have a seasonal character and their treatment: The Australian All groups CPI

is produced as an original series with no seasonal adjustment. Since the September quarter

2011, the ABS has produced an analytical series all groups CPI, seasonally adjusted. I

afghanistan countries_cpi... · 1 afghanistan a: identification title of the cpi: national consumer...

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